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China tech

New China data transfer rules to be costly for foreign companies

Business groups worry about vague terms in draft regulations

China's draft rules on cross-border data transfers do specify what data will be considered "important" enough to require review.   © AP

HONG KONG -- Proposed rules to tighten control on the transfer of data from China are likely to raise costs significantly for foreign companies operating in the country, lawyers say.

Under the draft of Measures on Security Assessment of Cross-Border Data Transfer published by the country's top internet watchdog last month, companies will be required to conduct a security review before they transfer any "important" data overseas. But "important" is left undefined.

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